What To Do When You Suspect That There Has Been A Contractual Breach

Contracts give business owners predictability and peace of mind in an uncertain world. Although a business has a certain degree of control within its walls, they frequently rely on third parties. By having a contract in place, you are setting expectations. Contracts can facilitate any business transaction by identifying what products and services are being provided, what is being exchanged in return, deadlines, and consequences for failing to meet the agreed-upon terms. This is a form of legal protection. Consider the business that buys raw materials from a third-party vendor. In the event of a dispute, the business has a signed contract that it can give to an attorney who can help them enforce the terms of the agreement.

Because of how financially significant a breach of contract can be, businesses have assurances that specific actions will be taken due to non-performance. Though several avenues exist, a contract may stipulate financial penalties or allow one side to terminate the contract. Although you may have a fundamental understanding of why contracts are so vital to a business’s long-term success, it is also essential to know what you should do when you suspect there has been a breach of contract.

The Steps to Take

Before we begin, we should stress the importance of having an experienced attorney draft your contracts. Not only will you have someone in your corner who can protect your business’s interests, but you also have a professional to turn to when a party is in breach. Although our business law attorneys will support, advise, and guide you through this process, here is a basic overview of what steps you should take. 

The first thing is to review the contract that you have signed. By examining the specific terms of the agreement, you will have a firmer understanding of what has been breached. Contracts frequently contain several clauses and provisions, which should also be reviewed. If you are reading this to be better prepared, you should note how important it is to document everything. After reviewing the contract, gather the necessary documentation for the breach. This includes emails, texts, and correspondence with the party in breach. That can consist of invoices and any documents you think your attorney can use. There is no such thing as too much information. 

You should contact an attorney before doing so, but you can contact the other party to discuss the breach. Litigation is a last resort, and the goal is to resolve the issue while minimizing its financial impact on you and your business. There are scenarios where that is the only thing you need. If not, you can meet with a neutral third-party mediator because it is more cost-effective than litigation. 

Speak with an Experienced Business Law Attorney Sometimes, you cannot resolve the dispute informally, whether through a conversation or mediation (which happens outside of a courtroom). When that happens, contact the attorneys at Fraser, Wilson, & Bryan, P.C. so that we can discuss your legal options. If you have to file a lawsuit, you may be able to seek damages for the losses your business suffered because of the breach. Contact our office to schedule your free consultation with one of our qualified attorneys.